People's Democracy

Concern Over REGA Wage Freeze

Smt Brinda Karat, CPI(M) leader and Rajya Sabha member, wrote the following letter to the prime minister on May 20, 2008, regarding a crucial aspect of the National Rural Employment Guarantee Act (NREGA), ie the wage aspect.

I WRITE to draw your urgent attention to the proposal being made by the ministry of rural development for a wage freeze for the NREGA --- at a time when the inflation rates are going up.

It is true that as far as the REGA is concerned, it is the central government which bears the full wage cost. At present there is no mechanism either in the act or the rules for consultation between the centre and the states regarding wage increases. This has been entirely within the jurisdiction of the state governments. If this is to be changed, even though it may be specifically for REGA, state governments should first be consulted.

In this connection, I would also like to draw your kind attention to another, which I consider a more immediate, problem, which is that in many states, workers are unable to earn a minimum wage even after a full day�s work, because of the very high SORs. In the last consultative committee meeting on rural development, I had given details and requested the setting up of a committee to look into the various issues concerning wages.

Unfortunately, the present proposal of the ministry has come without having any such comprehensive review. I would therefore request you to kindly set up such a committee including representatives of the state governments to look into all related issues, including the issue of NREGA wage hikes, before considering the proposal of the ministry.